1 thought on “What is group purchase?”

  1. Group purchases, all named group purchases, or group procurement. It is an organization or enterprise with a large purchasing power. With the Internet as the main contact information, it is united into a new model of procurement and protection of rights in conjunction with upstream merchants.

    The positioning of group purchase:

    Group purchase is a business operation model between group purchase and corporate alliance. It does not have less members like corporate alliances, close connections, and comprehensive production and supply and marketing cooperation. At the same time, it is more private than group purchase models. It needs to establish a certain trust among members.

    The differences between group buying and group purchase:

    The main audience of the group purchase model is a large purchasing power and may have a competitive relationship. Consumer group purchases, due to competitive relationships between enterprises, group purchases must not be as better as individual consumer group buying during the organization.

    It simply, group purchases are mainly targeted at individuals, and group purchases are mainly targeted at enterprises.

    The benefits of group purchase:

    In the fierce competition market economy, if companies want to survive and develop, they must produce high -quality and cheap products in accordance with market demand. This requires Enterprises need higher production technology and lower material costs. Generally speaking, the cost of procurement materials for manufacturing accounts for about 50 % of the total cost.

    This problems encountered in the procurement of small and medium -sized enterprises:

    (1) Folding small

    The demand for purchasing materials for small and medium -sized enterprises is relatively small, At the same time, due to limited funds, it is difficult to form a scale effect. The amount of enjoyment is small.

    (2) Low bargaining ability

    Due to the small purchase quantity, when negotiating with large suppliers, it is often in an unfavorable position. There are few opportunities to obtain bargaining initiative, and will obtain preferential procurement price discounts under the conditions such as increasing the ratio of the down payment, shortening payment time, and self -delivery.

    (3) Purchasing management costs high and high risk

    During the procurement process of the enterprise, the supplier selection, evaluation, negotiation, product trial, small batch of supply, problems, problems, problems Treatment costs incurred.

    The disadvantaged status in the procurement of small and medium -sized enterprises is mainly due to the small amount of procurement. If companies want to become weaker, it is difficult to achieve by a single enterprise. Take the road of group procurement. Group procurement is to unite different enterprises to form a procurement alliance, and to gather the decentralized orders of a single enterprise. The small order is a large order. Form a unified, purchasing products from the outside world, so that the purchaser has a greater right to speak. This is a link in the horizontal cooperative relationship between enterprises.

    The impact on the group purchase model on the production industry

    The production industry group purchase finger in homogeneous enterprises, unite customers who need to buy the same product The number of quantities reaches the scale that can obtain price discounts and propose procurement behaviors to suppliers. Through group purchases, the procurement costs and transaction costs of small and medium -sized enterprises can be greatly reduced, the purchase efficiency is improved, the information channels are expanded, and the effective connection between SMEs (buyers) and suppliers will be effective. Group buying is earlier and mature. For example, the largest American group procurement in 1990 is FPN (Pharmaceutical Network Alliance), which now has a member of 20 drug procurement groups in the United States, representing 10,000 independent pharmacies. Since 1998, with the continuous wave of mergers and acquisitions in the German market retail industry, it has created more and more large retail industry groups. Due to these groups' ability to control prices, German SMEs have joined the "group procurement portfolio" and group purchases. Many members have created a large number of purchases in order to lower the price and provide guarantee for the manufacturer. However, group purchases are not very mature in China, and most of the domestic group purchase of group purchases belongs to the union of large enterprises or between several large enterprises.

    The impact on the group purchase model on the circulation industry

    iculous use of the group purchase model, the circulation process of the goods will inevitably become more dense and complicated. This also gives logistics companies under pressure and opportunities. Only by introducing more advanced logistics technology and configuration of more complete logistics hardware can we take the lead in the distribution of SME group purchase models.

    The impact of group purchase model on consumers

    The owners with the same purchase intention organize to buy large prodigals from manufacturers, and turn the original purchase of passive rights to initiative. Changing the weak position in consumer behavior can not only save costs to the greatest extent, but also occupy a relatively active position in the process of purchasing and service, which can have higher security and enjoy better services. The cost advantage obtained by group purchases will eventually bring real benefits to consumers. This is an objective economic law and is also willing to see consumers.

    The group purchase is well understood and easy to understand. It has been widely circulated. I believe that in the near future, we will also blow up a network frenzy!

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